Former President Donald Trump’s crypto project, World Liberty Financial, is reportedly planning to issue its own stablecoin, according to Decrypt.

The stablecoin is expected to be pegged to the U.S. dollar to maintain a steady value amid the cryptocurrency market’s volatility. Sources close to the project told Decrypt that World Liberty is still assessing how to safely structure the coin before its launch.

This new venture follows World Liberty’s recent $14 million initial token sale and coincides with the appointment of Paxos co-founder Rich Teo, who will oversee the project’s stablecoin development. 

On October 9, World Liberty Financial revealed through a governance proposal its intention to launch a service as an Aave V3 instance on the Ethereum (ETH) mainnet. The decentralized platform Aave (AAVE) will serve as the backend for this initiative. 

The proposal states that World Liberty Financial’s Aave V3 instance will aim to enhance stablecoin liquidity for Ethereum and Wrapped Bitcoin (WBTC), as well as contribute to the expansion of Aave’s user community.

The proposed stablecoin marks a strategic shift for Trump’s venture, which has already made headlines with plans for an Ethereum-based borrowing and lending platform.

World Liberty Financial 

Former President Donald Trump launched World Liberty Financial on September 16, positioning it as a decentralized finance platform intended to empower users, with Eric Trump and Donald Trump Jr. serving as “Web3 Ambassadors.”

However, skepticism has emerged over the project’s legitimacy due to a governance token distribution that heavily favors insiders and links to individuals associated with a recent blockchain hack.

Despite bold statements from World Liberty Financial’s social media, concerns about transparency and the project’s unfinished white paper continue to raise doubts among industry observers.